USA Rare Earth (NASDAQ:USAR) Trading Down 3% – Here’s Why

USA Rare Earth Inc. (NASDAQ:USAR) was down 3% during trading on Friday . The company traded as low as $15.51 and last traded at $15.56. 14,640,213 shares changed hands during trading, a decline of 10% from the average session volume of 16,357,194 shares. The stock had previously closed at $16.04.

Trending Headlines about USA Rare Earth

Here are the key news stories impacting USA Rare Earth this week:

• Positive Sentiment: USA Rare Earth broke ground on a planned $1.2 billion rare-earth magnet manufacturing facility in South Carolina. The project could strengthen the company’s U.S.-based supply chain, support future magnet production and increase its strategic importance as domestic demand for critical materials grows. USA Rare Earth breaks ground at $1.2B rare earth magnet manufacturing facility in South Carolina
• Positive Sentiment: The South Carolina project was included among nearly $2 billion of recently announced U.S. industrial investments, highlighting the broader push to expand domestic manufacturing of steel, technology and critical materials. Nearly $2B in facility investments by US Steel, USA Rare Earth and more
• Neutral Sentiment: USA Rare Earth recently completed its acquisition of Brazil’s Serra Verde for $300 million in cash plus approximately 126.8 million shares. The deal adds the Pela Ema mine to the company’s mine, magnet and processing assets, but investors are assessing whether management can handle the additional debt, dilution and production ramp-up. USA Rare Earth acquired Serra Verde
• Negative Sentiment: Shares fell below the key 50-day simple moving average as analysts cited ongoing losses, cash burn and operational risks. The technical weakness adds to concerns following the company’s latest quarterly EPS miss and the need to fund major expansion plans. USAR Falls Below 50-Day SMA
• Negative Sentiment: Rare-earth stocks broadly weakened amid signs of improving U.S.-China relations. A potential easing of trade tensions could reduce the scarcity and domestic-supply premium that had supported USAR and other U.S. rare-earth companies. Rare Earth Stocks Tumble on U.S.-China Thaw Hopes

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on the company. Needham & Company LLC decreased their price target on USA Rare Earth from $39.00 to $33.00 and set a “buy” rating for the company in a research note on Wednesday, July 22nd. Benchmark restated a “buy” rating on shares of USA Rare Earth in a report on Wednesday, June 3rd. Roth Capital decreased their target price on USA Rare Earth from $40.00 to $30.00 and set a “buy” rating for the company in a research note on Tuesday, July 21st. Jefferies Financial Group initiated coverage on USA Rare Earth in a report on Wednesday, September 2nd. They set a “buy” rating and a $21.00 target price on the stock. Finally, Wall Street Zen raised shares of USA Rare Earth from a “strong sell” rating to a “sell” rating in a research note on Saturday, May 16th. Ten analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, USA Rare Earth has an average rating of “Moderate Buy” and a consensus target price of $33.71.

USA Rare Earth Stock Performance

The company has a market capitalization of $3.47 billion, a PE ratio of -6.40 and a beta of 2.58. The stock has a 50 day moving average price of $17.38 and a two-hundred day moving average price of $19.94.

USA Rare Earth (NASDAQ:USAR) last posted its quarterly earnings data on Monday, August 10th. The company reported ($0.15) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.07) by ($0.08). The company had revenue of $5.82 million for the quarter. Sell-side analysts predict that USA Rare Earth Inc. will post -0.62 earnings per share for the current year.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in USAR. NewEdge Advisors LLC raised its stake in shares of USA Rare Earth by 158.2% during the second quarter. NewEdge Advisors LLC now owns 2,324 shares of the company’s stock worth $25,000 after buying an additional 1,424 shares during the last quarter. Raymond James Financial Inc. acquired a new position in USA Rare Earth during the second quarter worth $223,000. Lighthouse Investment Partners LLC bought a new position in USA Rare Earth during the second quarter worth about $329,000. Bank of America Corp DE lifted its position in USA Rare Earth by 465.7% during the second quarter. Bank of America Corp DE now owns 242,726 shares of the company’s stock worth $2,659,000 after acquiring an additional 199,819 shares during the last quarter. Finally, LMR Partners LLP bought a new position in USA Rare Earth during the second quarter worth about $145,000.

USA Rare Earth Company Profile

USA Rare Earth, Inc is a U.S.-focused critical minerals company developing an integrated rare earth supply chain. Its activities center on the production of rare earth materials used in permanent magnets, electric vehicles, wind turbines, defense systems, electronics and other advanced technologies.

The company’s principal asset is the Round Top rare earth and critical minerals project in Hudspeth County, Texas. USA Rare Earth is advancing plans to mine and process ore from Round Top and produce separated rare earth oxides and other critical mineral products, including materials containing neodymium, praseodymium, dysprosium and terbium.